) reached another intraday high on Thursday after fresh economic data supported a soft landing chairman and managing member of Great Hill Capital, LLC, Thomas J. Hayes,I'm Brad Smith and this is Yahoo Finance's guide to building your financial footprint.
Again, those jobless claims coming in at four month low, that is better than expected news, particularly as we have just wrapped up the end of the feds most aggressive rate hiking cycle of the last four decades.
Lee, great to have you here first and foremost, just as we get into this high level, what do rate cuts means for savers?I hope you, you get this picture. Uh, one of the things that I think it's interesting the conversation you were just having about the jobs market.So do they feel like they need to, uh, reduce rates at a faster or, or bigger clip, uh, to do exactly what she said and get employers to feel better about bringing on more staff buying equipment, things of that nature?
Now, on the flip side, if I'm looking at that as having some dry powder, if you will, uh, and looking for an investment opportunity and if I see that opportunity, sure, maybe now is the time where I may be taken out of the high yield investments and put it into the markets.And so with that in mind, if you don't already have a high yield savings account, it sounds like now might be the time to, to consider opening one then.
So if you can uh go to different sources, do some research and perhaps find uh some of those places uh that are still giving you perhaps, you know, 4.85% interest rates on a 12 month or, or longer CD.Uh As far as rate cuts are concerned, another thing to keep in mind is to, to kind of uh perhaps create a ladder of sorts so that over time you can get uh rates locked in at different periods.
Uh Moving here, I think moving forward history suggests that the Un Magnificent 493 will outperform the Magnificent Seven.Uh History also suggests after the first rate cut, small caps will outperform large caps by over 11% in the 1st 12 months. So, I think um if you're on margin, you wanna be off margin, we're fully invested, we're gonna stay fully invested.
And with this stimulus, their economy is gonna re accelerate and there's gonna be huge opportunities, not just for us, multinationals that are trading down because of China, but for actually some of the highest quality companies in China that have been left for debt.Great Hill capital chairman and managing member.
So, you know, it does signal that perhaps we'll see a little bit more robust home buying as we head into September and October.Um Finn reported today that they had the first drop in how much you need to have to buy the average home since 2020.But the issue is that the average family in America makes about 84.
Uh And, and on that very matter as well here, Claire, thanks so much for taking the time here with us today, Claire Boston of Yahoo Finance and everyone, the Federal Reserve's bold rate cut last week brought relief to many potential home buyers. And so I think that the rate cut did get people off the sidelines and you know, a lot of it is psychological, right?
Really say, ok, now, I think I can make sure that I'm able to take out a mortgage and then give myself good terms for a longer period of time.And, and while that is a lot higher, let's be honest, it's a lot higher than it was post pandemic.The reality is the low 6% is very much in line with us historical averages.And we need to see more inventory on the market.I think the combination of all of those factors is what's going to get buyers off the sidelines.
So for the last couple of years, then buyers will have more potential and more power at that negotiating table.But I think it's an interesting prospect to keep an eye on Kine Lane who is the Caldwell banker, Ceo great to have you here on the program with us and thanks for taking the time great to be here.If you're in the path of the storm, you might be taking a closer look at protecting your home from damage via homeowners insurance.First.
When we come back, it's fall, which usually means it's time for pumpkin spice everything but the flavor may not be hitting the same for the US consumer and their wallets.
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